The deadline for filing the 2019 Income Declaration has already been opened and there are many doubts from taxpayers related to the activities to be declared. One of the most common has to do with online betting. "Declare sports bets of 2019", "percentage of the Treasury in sports bets of 2018" or "taxation of sports bets of 2018" are some of the search terms related to this type of activity. Do I have to declare online sports betting to the Treasury? We see it below.
Am I obliged to declare online bets to the Treasury in the Declaration?
Declare profits or losses in the Income Statement depends, like any activity that affects our income, on two factors.
Specifically, declaring bets of whatever type (poker, online casino, sport ...) to the Treasury is mandatory in the following cases:
- If we obtain a profit that together with another profit that affects our assets or real estate performance exceeds 1,600 euros
- If we obtain a profit of more than 1,000 euros and an income derived from work (gross annual salary) greater than 22,000 euros. The income from real estate income (housing rental), subsidies for Official Protection housing of more than 1,000 euros or Public Treasury bills also enter into the equation
Assumptions
- My annual gross salary is 20,000 euros and I have won 1,700 euros in online bets, do I have to declare the bets in the Income Statement? Yes .
- My annual gross salary is 28,000 euros and I have won 750 euros in online bets, do I have to declare the bets in the Income Statement? No, although there is an obligation to present the Declaration .
- My annual gross salary is 12,000 euros and I have won 2,200 euros in online bets, do I have to declare the bets in the Income Statement? Yes .
Where and how do I declare online bets in the Income Statement?
Given that online sports bets and other bets are not included in any section of the RETA for the self-employed, they must be declared together with the rest of the boxes related to the performance obtained during the last fiscal year, that is, in 2018.
The boxes in question are described in the following sections:
- Return on movable capital
- Return on real estate capital
- Performance of economic activities
- Work performance
- Capital gains and losses
It is precisely in this last section where we will have to declare all the earnings derived from the online game. Do I have to declare my betting losses? Affirmative, and must be computed together with earnings.
Specifically, the way to declare online bets is made based on the following equation:
- Amount to be declared = Profits - Losses - (Income + Withdrawals)
Assumptions
- 1,300 euros of gains - 1,000 euros of losses - (2,000 euros of income + 1,100 euros of withdrawals) = - 600 euros to declare
- 4,000 euros of gains - 500 euros of losses - (1,300 euros of income + 3,000 euros of withdrawals) = 5,200 euros to be declared
Percentage and taxation of sports bets in 2019
Betting As we have mentioned in the previous section, the declaration of sports bets must be made together with the rest of the income obtained from other activities that affect our income, therefore, the percentage to be applied must be applied together with the rest of the boxes.
Regarding the percentages to be applied, the Treasury defines the following amounts based on the general performance of the fiscal year:
- Up to 12,450 euros of tax base : 19%
- From 12,450 to 20,200 euros of tax base : 24%
- From 20,200 to 35,200 euros of tax base : 30%
- From 35,200 to 60,000 euros of tax base : 37%
- From 60,000 to above : 45%
So how much do I have to pay Hacienda for online gambling? In general, the percentage applied to the total return that we have obtained in 2018 of all the concepts previously discussed . Income from work, furniture and real estate, economic activities (self-employed) and those that affect our assets, that is, online gambling.
We must bear in mind that the income obtained at work is subject to a certain tax base, which may vary depending on the hiring company.
Assumptions
- I have obtained earnings in sports betting of 3,000 euros and I have an annual gross salary of 15,000 euros, of which 950 euros are withheld from Social Security and 2,000 euros as personal income tax, how much do I have to pay? 660 euros approximately .
- I don't have a job and I have obtained online gambling earnings of 5,560 euros, how much do I have to pay? 0 euros .
Common questions about the declaration of online bets
Along with the doubts that we have just resolved, there are many questions related to the declaration of certain variables within a certain home bookmaker that we meet the conditions to declare the bets in the 2018 Income.
Do I have to declare the money not withdrawn from the bookmakers?
Yes. Regardless of whether they have been withdrawn to the bank account or PayPal, the money must be computed to declare the performance obtained in 2018.
Do I have to declare losses to the Treasury if I have not obtained a profit?
Yes. We get losses or gains, the amount has to be indicated through the equation described at the beginning of the article.
Do I have to declare the betting bonuses and money that the bookmaker gives me?
Yes, and they have to be computed in the equation to calculate the performance obtained throughout the year.
Do I have to declare the money that I have in all the bookmakers?
Yes. The way to calculate it is based on the same equation raised at the beginning of the article, with the exception that we will have to calculate the yield house by house to declare the total amount in the box of Capital gains and losses.